Scania builds trucks with fossil-free steel from SSAB

Steel producer SSAB and truck manufacturer Scania have signed a letter of intent whereby Scania will build its trucks using fossil-free steel from SSAB.

This means that Scania will replace the current deliveries of traditional steel from SSAB with SSAB's new fossil-free steel, which will start being delivered in 2026, produced in the new Hybrit technology using electricity and hydrogen gas instead of coal and coke.

SSAB is Scania's main supplier of steel. The goal of 100% green deliveries is one of the most ambitious that SSAB and a customer have agreed on.

“We are truly looking forward to ramping up the deliveries of our fossil-free steel, thereby contributing to more sustainable value chains. Fossil-free steel will be a game-changer in heavy transport. It has the same high quality and technical properties as traditional steel. And, while being produced in a sustainable way, it can also be recycled just like steel has always been,” says Martin Lindqvist, CEO at SSAB.

Scania has developed a strategy to significantly reduce carbon dioxide emissions by 2030 in four areas that account for about 80% of the emissions in the company's supply chain: batteries, steel, aluminum and cast iron. The targets initially apply to Scania's production in Europe, but will later be extended to China and Latin America.

“I’m glad and proud that we have reached this agreement. Scania’s purpose is to drive the shift towards a sustainable transport system. To fulfil that purpose, we take action across the value chain together with partners as SSAB, who is at the forefront in the transition to a sustainable steel industry,” says Christian Levin, CEO at Scania.

The agreement is in line with the plan of the First Movers Coalition (FMC). FMC, of which Scania and SSAB are members, works to reduce the climate footprint in sectors that are considered particularly difficult to transition. Through the FMC, Scania and SSAB have committed to use their purchasing power to create early markets for innovative and green technologies.

Lennart Håkansson